3 big things today, August 14, 2024

1. Wheat futures slightly down in overnight trading

Wheat futures fell slightly overnight due to the advancement of the US harvest and increased production in Ukraine.

There were little changes in corn and beans.

The U.S. winter wheat harvest was 93 percent complete at the start of the week, compared with 88 percent seven days earlier and the five-year average of 91 percent, the Agriculture Department said in a report.

Spring wheat producers harvested 18 percent of the U.S. crop, up from 6 percent the previous week but less than the 21 percent average for this time of year, the government said.

About 72% of spring wheat was in good or excellent condition on Sunday, down from 74% the week before but significantly higher than the 42% that received the top grade at this point in 2023.

Meanwhile, in Ukraine, wheat production in the 2023-2024 marketing year rose 4% year-on-year to 23 million tonnes, according to an attaché report from the USDA office in Kyiv.

Corn production in the war-torn country rose 18 percent to 31 million tons.

Production of all major cereals rose by 10% to 60.1 million tonnes, “mainly due to an increase in maize production”, the government said.

Wheat futures for September delivery fell 3 1/4¢ to $5.25 1/2 a bushel, while Kansas City futures lost 2 3/4¢ to $5.45 a bushel.

Corn futures for December delivery fell 1/2¢ to $3.96 3/4 a bushel.

Soybean futures for November delivery rose 2 3/4 cents to $9.65 1/4 a bushel. Soybean meal gained $1 to $300.20 a short ton and soybean oil gained 0.47 cents to 39.56 cents a pound.

2. Credit stress on agricultural products limited, signs of pressure evident

While credit pressures on the agricultural industry were “limited” in the second quarter of the year, they showed signs of tightening amid lower crop prices and rising input costs, according to a survey by the Federal Reserve Bank of Kansas City.

Farm incomes in the Tenth Federal Reserve District, which includes western Missouri, Nebraska, Kansas, Oklahoma, Wyoming, Colorado and northern New Mexico, fell faster than in recent quarters due to lower grain prices and increased spending.

“Despite sharp declines in farm incomes and capital expenditures, the credit crunch in agriculture remained limited, but there were signs of financial pressures,” the survey said. “Lenders reported a slight deterioration in farm finances, farm loan repayment rates declined at a similarly slow pace to recent quarters, and farm repayment problems increased slightly.”

About 60 percent of agricultural lenders said their revenues were lower than last year, the Fed said. High livestock prices were not enough to offset low crop prices, the survey said.

Incomes fell across the country, but the biggest declines were in states that rely on crop production.

“The farm income index was lower in Kansas, Missouri and Nebraska,” the Fed said. “After strengthening last quarter, farm incomes in the Mountain States and Oklahoma declined in the second quarter as 30% of lenders in those states reported lower farm incomes than a year ago.”

3. Flooding expected in parts of Missouri

According to the National Weather Service, flood warnings have been issued for much of central Missouri due to heavy rainfall in the region.

“Thunderstorms with very heavy rainfall can lead to flash floods,” the agency said in a report.

Runoff from saturated fields can cause rivers, streams and other waterways to overflow their banks, the NWS said.

Extremely hot weather is forecast from northeast Kansas to the Texas Gulf Coast and east to the Florida Panhandle.

In northeastern Oklahoma, heat temperatures of up to 45 degrees Celsius are expected this afternoon, the agency said.